VALLETTA (MALTA) (ITALPRESS/MNA) – The Maltese economy is expected to expand at a steady annual rate of 3.7% between 2026 and 2028, according to the Central Bank’s latest medium-term forecasts.
Real GDP growth prospects remain unchanged from previous estimates, with private consumption continuing to be the main driver of economic activity. Household spending is expected to remain solid, thanks in part to recent adjustments to income tax brackets. Net exports are also expected to be positive, particularly thanks to the services sector. Employment growth is expected to gradually slow, reaching 2.3% by 2028.
The unemployment rate is expected to decline to 2.8%. Inflation, measured by the Harmonized Index of Consumer Prices, is expected to stand at 2.3% in 2026, then decline to 2.1% in 2027 and 2.0% in 2028. The decline is mainly attributed to lower services inflation. Core inflation is expected to decline to 1.9% by 2028. Public finances are also expected to improve.
The deficit-to-GDP ratio is expected to decline from 3.0% in 2025 to 2.0% by 2028. The debt-to-GDP ratio is expected to peak at 47.1% in 2026, then decline to 46.2% in 2028.
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(ITALPRESS).
